BS: Dollar Pares Advance as Gain in Stocks Revives Demand for Risk
Oct. 18 (Bloomberg) -- The dollar pared its gain versus a basket of major currencies including the euro and yen as a gain in stocks on the prospects for more easing by the Federal Reserve revived demand for higher-yielding assets.
The yen rose against most of its major counterparts on bets Japan will refrain from intervening to weaken its currency before this week’s meeting of policy makers from Group of 20 nations. The euro dropped versus the Swiss franc after European Central Bank Jean-Claude Trichet rejected Bundesbank President Axel Weber’s call to end bond purchases.
“The dollar in general has given up a bunch of its overnight gains across the board and against the euro on a reversal in risk sentiment,” said John Doyle, a strategist in Washington at the currency-trading firm Tempus Consulting Inc.
The dollar advanced 0.1 percent to $1.3962 per euro at 11:05 a.m. in New York, from $1.3977 on Oct. 15, when it reached $1.4159, the weakest level since Jan. 26. The euro slid 0.5 percent to 113.31 yen, from 113.88, after touching 112.41, the lowest level since Sept. 24. The yen gained 0.3 percent to 81.18 per dollar, from 81.45. It touched 80.88 on Oct. 15, the strongest level since April 1995 and near its post-World War II high of 79.75 yen, reached that month.
--With assistance from Paul Dobson and Matthew Brown in London and Yoshiaki Nohara in Tokyo. Editors: Dennis Fitzgerald
To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
